Brainbees Arm to Acquire KA Hygiene in ₹57.74 Cr Share Swap Deal

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Pune-based Brainbees Solutions, the parent company of omnichannel baby care retailer FirstCry, has announced the acquisition of K.A. Enterprises (Hygiene) as part of its strategy to deepen its presence in the fast-growing hygiene products segment. The acquisition will be executed through Swara Baby Products, a subsidiary of Brainbees.

In a regulatory filing dated December 23, Brainbees said Swara Baby will acquire 100% equity ownership of KA Hygiene through a share swap transaction valued at ₹57.74 crore. As part of the deal, Swara Baby will issue 38,49,572 equity shares to the existing shareholders of KA Hygiene. The transaction does not involve any cash outflow and is expected to be completed by the end of the year.

Following the issuance of new shares, Brainbees’ stake in Swara Baby will reduce to 75.92% from 87.29%, reflecting the dilution resulting from the equity issuance.

Strengthening Hygiene Portfolio

Incorporated in 2019, KA Hygiene is engaged in the manufacturing and trading of hygiene products. The company recently took over business operations of a related entity operating in the same segment, consolidating its hygiene-focused portfolio.

On a consolidated basis, the hygiene business reported revenue of ₹84.01 crore in FY25, up from ₹80.42 crore in FY24 and ₹58.45 crore in FY23, indicating steady growth. The business posted a profit after tax of ₹5.22 crore in FY25. KA Hygiene has only recently begun standalone operations, and its individual financials are currently limited.

Expansion Plans Continue

Separately, Brainbees has also incorporated Swara Corp in the United States through Swara Baby Products, signalling its intent to expand internationally in the hygiene and disposable products category.

Brainbees recently reported consolidated revenue of ₹2,099 crore in Q2 FY26, along with a positive EBITDA of ₹111 crore for the quarter ended September 30, 2025. The acquisition of KA Hygiene aligns with the company’s broader strategy to scale private labels and strengthen margins across adjacent baby and family care categories.

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